U.S. stock futures edge up; China data, ISM in focus

China PMI beats forecasts, inspiring gains in overseas stocks

NEW YORK (MarketWatch) — Stock futures moved marginally higher on Monday, as an important week for U.S. data kicks off with an Institute for Supply Management survey due after the opening bell.

Upbeat Chinese manufacturing data has given overseas markets a lift.

Futures for the Dow Jones Industrial Average
US:DJM4
rose 19 points to 16,723, while those for the S&P 500 index
US:SPM4
inched up 1 point to 1,922.40. Futures for the Nasdaq-100 index
US:NDM4
gained 2.25 points to 3,737.75. Both the S&P and Dow industrials closed Friday at record levels.

At 9:45 a.m. Eastern Time, the Markit purchasing managers index for May will be released in what is a busy week for global PMI data. But the more closely watched data will come 15 minutes later, when the Institute for Supply Management publishes its May survey. The ISM index, which gauges the confidence of manufacturing executives, is seen edging up to a healthy 55.8% in May from 54.9% in the prior month. Any number above 50% signals expansion.

Investors will have to wait until Friday for the key U.S. jobs report, which is expected to show a net gain of at least 200,000 nonfarm payrolls. That would mark the fourth straight month that hiring has topped 200,000. Read: May likely to bring a shower of new U.S. jobs

Chicago Federal Reserve President Charles Evans said Monday that the timing of any rise in U.S. interest rates will largely depend on the inflation outlook, at a conference in Istanbul, Reuters reported.

“Everybody is more comfortable and understanding the current economic conditions are such that (it is) appropriate for monetary policy to remain highly accommodative well into 2015 and you know it could even be 2016,” he said.

The month of May for Wall Street closed with the biggest gain in three months, but that was made on the lowest average volume since August 2013. Volatility, as measured by the CBOE VIX index
VIX, +6.29%
is at levels not seen since March 2013. On Friday, the S&P 500
SPX, -0.45%
ended at a record level for the 14th time this year and the Dow industrials
DJIA, -0.47%
logged its fifth record close this year.

Worst money mistakes you can make at any age

(2:14)

MarketWatch's Jim Jelter describes the worst mistakes you can make financially in your 20s, 30s, and 40s, the decades of your life which are so critical to long-term financial security. (Photo: Getty Images)

The baton for Wall Street’s rally was picked up by Asia on Monday, with the Nikkei 225 index
NIK, -0.06%
surging 2.1%. China’s latest official PMI index rose to a five-month high of 50.8 in data released Sunday, helping boost Asian markets. That helped spur the U.S. dollar back over 102 yen
USDJPY, -0.08%
which in turn boosted Japan stocks. Chinese markets on the mainland and in Hong Kong were closed for a holiday.

The strong Chinese data also helped European stocks, with gains for the Stoxx Europe 600
SXXP, -0.92%
driven by natural-resource firms.

Another big event on the calendar this week is the European Central Bank’s June meeting on Thursday. Analysts expect the central bank will push deposit rates into negative territory for the first time ever.

Shares of American Realty Capital Healthcare Trust Inc.
US:HCT
surged 11% on news that Ventas Inc.
VTR, -0.20%
has agreed to buy the company in a $2.6 billion deal.

Shares of Protective Life Corp.
PL, +0.00%
soared 17% in premarket trading after Dai-ichi Life Insurance Co.
8750, -0.36%
said it was considering buying a life insurer, in response to a report that it was mulling a $4.87 deal to buy Protective Life, The Wall Street Journal reported.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.